Foreigners can open a bank account in Samoa if they plan to live and work here. They can also open an offshore bank account, which is necessary when an individual does not live in the country where the account is set up. There are numerous reasons to opt for offshore bank accounts, and some of the most important are the financial conditions provided by the jurisdiction of choice and the bank.
In Samoa, bank accounts can be set up by natural persons and corporate structures and it must be noted that it is also possible to open an overseas bank account here, as remote setup is available. However, prior to doing so, it is recommended to verify all the banking institutions operating in Samoa, as not all may offer this service. Our consultantscan inform you of the banks where remote registration is possible.
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Submitting documentation for bank account setup in Samoa
Both individuals and companies must prepare a set of documents when applying to open a bank account in Samoa. This requirement applies to all types of accounts. In the list below, our consultants present some of the documents necessary for corporate entities:
- the completed application form, provided by the bank;
- the certified passport copies of the company’s shareholders and directors;
- the company’s statutory documents and registration certificates;
- proof of address – this is necessary for the company’s shareholders and directors and it is a mandatory procedure regardless if the investors have set up an onshore company or have opted for offshore company formation.
Individuals opening a bank account in Samoa for personal purposes must also submit several documents, such as identity papers (foreigners can only present their passports, especially those who are not residents of Samoa) and the proof of address.
What should foreigners take into consideration when opening a bank account in Samoa?
There are many things that should be of interest when opening an offshore bank account. First of all, foreigners should verify the basic conditions under which the accounts can be set up and whether they qualify under the criteria imposed by local banks.
After deciding on a bank, foreigners must gather the proper documentation (as reflected earlier in this article) and submit it with the filled-out application form provided by the bank.
Depending on the type of account, individuals or the representatives of companies must make the initial deposit, so the minimum sum required by the banking institution should be prepared for this step (unless exemptions are granted).
Once these matters are completed, the account will enter the formal approval phase, after which the clients will be notified when the account can be used.
Similar steps apply for those who opt to open an overseas bank account, only that the submission of documents and of the application form is done via the online platform provided by the selected bank. The bank’s representatives will analyze the documentation and then will send online confirmation that the papers have been received.
In the case in which the bank approves the setting up of the account, another confirmation will be sent to the client, who will be then required to make the initial deposit.
What are the advantages of selecting the Samoan banks?
In either case (in person/on-line application), it is recommended to open a bank account in Samoa because the banking industry provides various advantages, some of which are:
- low fees;
- a variety of banking services (mobile banking, online services, availability of ATMs);
- minimum balance;
- local support throughout the registration process, as well as ongoing assistance;
- the variety of bank accounts that can be set up by foreign clients;
- services for international purposes.
International banking services available in Samoa
The latter service is most likely of interest for foreigners who want to open an offshore accountor for persons who live in Samoa and want to benefit from competitive international banking services, provided that they are connected to other foreign markets for personal or commercial purposes. Some of the main international banking services are:
- foreign exchange;
- foreign currency accounts;
- international money transfers (the procedure can be completed in minimum 1 day and up to 3 days);
- currency converter;
- trade finance services.
The banking sector in Samoa
Samoa is a compact economy that has a small population (218,000 individuals), therefore it does not have a large financial industry. Even so, the few commercial banks operating here provide very good conditions to both local and foreign clients. According to the Central Bank of Samoa, the latest data show the following:
- there are 4 commercial banks operating in Samoa, all of which are registered with the Central Bank;
- these banks can charge interest rates to savings accounts ranging from 1% to 2.5% (some banks offer full exemption of charging interest rates, while others apply the exemption on certain categories of clients, such as students or retirees);
- 3 banks require clients to submit a minimum deposit of $20 to $100, while only one bank does not impose a minimum deposit;
- for electronic accounts, only 1 bank imposes fees ($20 as minimum balance, 1% interest rate, $4 for withdrawals, $5 – monthly maintenance fee);
- for foreign currency accounts, all banks charge monthly fees ranging from $5 to $50;
Many clients who open an offshore bank account choose foreign currency accounts, which are available in Euro, American, New Zealand or Australian dollars. Please mind that 2 out of the 4 banks also impose quarterly fees for foreign currency accounts. The fee ranges from $20 to $30, depending on the bank and the currency.
Local banks also offer mobile phone banking services and, in most cases, for the majority of operations that can be done using the phone, there aren’t any associated fees. Clients who want to set up an offshore bank accountcan refer to our team for advice on any other matter concerning the banking system and banking services available in Samoa.
What are the policies for closing a bank account in Samoa?
Given the locals and foreigners can open a bank account in Samoa, they also have the right to close the account in specific situations. Clients can decide to close their accounts due to a variety of reasons – for instance, they may opt to do so if they observe that another bank offers better conditions for the same type of bank account.
The client can also take this decision if the bank at which the account is set up has reviewed its policies on fees and other maintenance costs and the client does not consider that the new system is in his/her best interest.
This right, of closing the account, is not limited only to the decision of the client, it can also be established by the bank, provided that the account was used in ways which are not allowed by the regulatory framework in Samoa or due to improper behavior of the client in connection to the bank’s employees. However, in practice, the latter usually results in issuing a warning.
The rules concerning the moments when the banking institution is entitled to terminate a bank account are established by the Code of Banking Practice, which is applicable regardless if a client opens an onshore or an offshore bank account.
When the client is the party that decides to close the account, he or she needs to first clear the account by withdrawing the current deposits. Then, the bank must also be notified on the decision, along with any other third party that would make payments to the respective account on the fact that the account will be disabled.
Individuals who have completed the setup of the offshore bank accountonline will be able to close the account without having to arrive in person at the bank where the account was registered. Please mind that in certain cases the banks can request a fee for this procedure.
In general, individuals or companies that have been the clients of local banks for several years will not have to pay any fees for this procedure, as it is usually applied for those who have recently opened the account.
We also mention that if you want to set up anoffshore merchant account, you have the right to close it, just like in the case of a bank account. The holders of an offshore merchant account can decide to close the account when they want/have to close their business.
However, there are other reasons that can lead to this decision – for instance, when business owners want to sell their company, or when they want to opt for a different merchant account service provider that offers better financial terms.
Our team can represent clients who want to open an offshore account through the power of attorney. We can also facilitate the setup of an offshore merchant account, provided that foreign investors want to launch an e-commerce platform. Please contact usfor more details.